There may be a silver lining to the downturn for owners of businesses who could minimise inheritance tax, according to business advisory firm Deloitte.

Recent changes to inheritance tax have given it even more clout than previously but the downturn presents a good opportunity to transfer assets while they are at a relatively high value.

Jon Croxford, director of private client services at Deloitte in Birmingham, said: “For many individuals, passing on wealth is an important consideration.

“Changes over a number of years have given inheritance tax real bite, making it more difficult to leave wealth in family trusts for succeeding generations.

“Whilst declining asset and share values have provided many families with a continuing headache, the current low asset value in certain sectors may represent an opportunity to pass on wealth to the next generation, whilst minimising inheritance tax charges.”

Business owners could pass on shares in family companies as a gift to children or grandchildren. Where investment companies are involved, a husband and wife could, between them, transfer assets worth up to £624,000 to a discretionary trust, free of inheritance tax provided their nil-rate bands remain unused.

The gifts must be made without strings to avoid having to tax the gifted asset as part of the donor’s estate on death.